In January 2011, Conan, a cash basis taxpayer, purchases for $4,000 a Series EE savings bond with

Question:

In January 2011, Conan, a cash basis taxpayer, purchases for $4,000 a Series EE savings bond with a value of $4,800 (a 6% annual yield). At the same time, he also purchases for $5,000 a 3-year bank certificate of deposit with a value of $6,650 (a 10% annual yield). Both securities mature in 2013. Must Conan recognize any income in 2011? How much income must Conan recognize in 2013?

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...